New Overnight Developments Abroad - Daily Update
Global Equities Rise as Week With Many Central Bank Meetings Kicks Off
March 18, 2024
Among the many central bank policy meetings lined up for the coming week, two questions loom in particular. Will the Fed reduce the number of likely rate cuts this year from three as indicated earlier? Possibly. And will the Bank of Japan Board end its negative 0.1% overnight interest rate target, which is deemed likely […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: March 16-22, 2024
March 15, 2024
Central Banks: Interest rate-setting meetings in the United States, U.K., Japan, Switzerland, Mexico, Brazil, Indonesia, China, Taiwan, Russia, Norway, Iceland, Morocco, and Czech Republic. Post-meeting press conferences will be presented by Powell, Bailey, Ueda, Bullock, and Jordan among others. Updated Fed forecasts will be revealed. Special Events and Holidays: Russia’s presidential election runs Saturday through […] More
New Overnight Developments Abroad - Daily Update
Equity Resilience Despite an Elusive Start Date for Fed Rate Cuts
March 15, 2024
A round of sticky U.S. price data has put the onset of an easing cycle in Fed policy on ice temporarily. February consumer and producer prices rose considerably more sharply than anticipated. So was today’s news of an 0.8% monthly jump in export prices. The 0.3% advance in import prices merely matched expectations, and resulted […] More
New Overnight Developments Abroad - Daily Update
Continuing Focus Upon Inflation Data
March 14, 2024
Several price data were released this Thursday even before the highly awaited U.S. PPI report. The monthly increase of Spanish consumer prices in February got revised higher to 0.4% from 0.3% reported initially, by year-on-year CPI inflation remained unchanged at a 6-month low of 2.8%. Spanish inflation peaked in July 2022 at 10.8%. Irish CPI […] More
Central Bank Watch
National Bank of Georgia Interest Rate Reduced to 8.25% from 9.0%
March 13, 2024
Officials at the National Bank of Georgia implemented a bigger interest rate cut of 75 basis points this month than those of 50 bps at the prior two policy reviews. They cited the very low CPI inflation rate of 0.3% versus a target of 3.0% and a high-water mark of 13.9% recorded in December 2021 […] More
New Overnight Developments Abroad - Daily Update
Muted Reaction to U.S. CPI Report But Further Significant Data Coming Soon
March 13, 2024
In overnight financial market action, movements in the dollar, U.S. stock futures, and long-term interest rates were minimal even though total and core U.S. CPI figures out yesterday were marginally above expectations. Still ahead this week are the releases of U.S. retail sales, producer prices, industrial production, consumer confidence and import prices plus Chinese retail […] More
New Overnight Developments Abroad - Daily Update
Calm Before U.S. CPI Release
March 12, 2024
U.S. February consumer price data will be released within the half hour and are expected to reflect an unchanged year-on-year rate but lower underlying price pressure. In the meantime, the dollar has risen overnight by 0.3% against the yen and 0.2% versus sterling but is otherwise just marking time. Ten-year sovereign debt yields have dropped […] More
New Overnight Developments Abroad - Daily Update
Market Focus Swings Back to Inflation
March 11, 2024
This week brings the release of U.S. consumer price data tomorrow, U.S. producer prices on Thursday and U.S. import prices due Friday. China reported CPI and PPI figures today, Japanese producer prices arrive Tuesday as do Brazil’s CPI and the finalized German CPI data. Barring a big surprise, the likeliest initial Fed rate cut is […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: March 9-15, 2024
March 8, 2024
Central Banks: Monetary policies will be reviewed in Armenia and Uzbekistan. Special Events: The U.S. and Canada revert to daylight savings time this Sunday. There will be a meeting of European Union finance ministers. Portugal’s legislative election will be on March 10, and voting in Russia’s presidential election starts on March 15. Scheduled U.S. Economic […] More
New Overnight Developments Abroad - Daily Update
Strongest Euro Since Mid-January
March 8, 2024
Fed Chairman Powell’s depiction of the U.S. economy continues to exert a mildly negative effect on the dollar, which remains firm historically but fell another 0.6% overnight against the yen and to is lowest euro-translation value since mid-January. Powell described the U.S. economy as being in a good place, with comparatively lively growth in GDP […] More
